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Segment Information (Unaudited)
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The following table presents sales and operating income by segment:
Three Months Ended March 31
$ in millions20242023
Sales
Aeronautics Systems$2,969 $2,515 
Defense Systems1,412 1,376 
Mission Systems2,659 2,563 
Space Systems3,655 3,350 
Intersegment eliminations(562)(503)
Total sales10,133 9,301 
Operating income
Aeronautics Systems297 237 
Defense Systems177 160 
Mission Systems378 360 
Space Systems332 313 
Intersegment eliminations(80)(68)
Total segment operating income1,104 1,002 
FAS/CAS operating adjustment6 (21)
Unallocated corporate expense(39)(34)
Total operating income$1,071 $947 
Other (expense) income
Interest expense(146)(129)
Non-operating FAS pension benefit168 132 
Other, net38 48 
Earnings before income taxes$1,131 $998 
FAS/CAS Operating Adjustment
For financial statement purposes, we account for our employee pension plans in accordance with FAS. However, the cost of these plans is charged to our contracts in accordance with applicable Federal Acquisition Regulation (FAR) and U.S. Government Cost Accounting Standards (CAS) requirements. The FAS/CAS operating adjustment reflects the difference between CAS pension expense included as cost in segment operating income and the service cost component of FAS expense included in total operating income.
Unallocated Corporate Expense
Unallocated corporate expense includes the portion of corporate costs not considered allowable or allocable under the applicable FAR and CAS requirements, and therefore not allocated to the segments, such as changes in deferred state income taxes and a portion of management and administration, legal, environmental, compensation, retiree
benefits, advertising and other corporate unallowable costs. Unallocated corporate expense also includes costs not considered part of management’s evaluation of segment operating performance, such as amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of property, plant and equipment acquired through business combinations, as well as certain compensation and other costs.
Disaggregation of Revenue
Sales by Customer TypeThree Months Ended March 31
20242023
$ in millions$
%(3)
$
%(3)
Aeronautics Systems
U.S. government(1)
$2,525 85 %$2,108 84 %
International(2)
381 13 %331 13 %
Other customers4 — %11 — %
Intersegment sales59 2 %65 3 %
Aeronautics Systems sales2,969 100 %2,515 100 %
Defense Systems
U.S. government(1)
930 66 %803 59 %
International(2)
262 19 %388 28 %
Other customers21 1 %16 1 %
Intersegment sales199 14 %169 12 %
Defense Systems sales1,412 100 %1,376 100 %
Mission Systems
U.S. government(1)
1,912 72 %1,935 75 %
International(2)
454 17 %376 15 %
Other customers16 1 %15 1 %
Intersegment sales277 10 %237 9 %
Mission Systems sales2,659 100 %2,563 100 %
Space Systems
U.S. government(1)
3,477 95 %3,166 95 %
International(2)
65 2 %71 2 %
Other customers86 2 %81 2 %
Intersegment sales27 1 %32 1 %
Space Systems sales3,655 100 %3,350 100 %
Total
U.S. government(1)
8,844 87 %8,012 86 %
International(2)
1,162 12 %1,166 13 %
Other customers127 1 %123 1 %
Total Sales$10,133 100 %$9,301 100 %
(1) Sales to the U.S. government include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is the U.S. government. Each of the company’s segments derives substantial revenue from the U.S. government.
(2) International sales include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is an international customer. These sales include foreign military sales contracted through the U.S. government.
(3) Percentages calculated based on total segment sales.
Sales by Contract TypeThree Months Ended March 31
2024 2023
$ in millions$
%(1)
$
%(1)
Aeronautics Systems
Cost-type$1,313 45 %$1,231 50 %
Fixed-price1,597 55 %1,219 50 %
Intersegment sales59 65 
Aeronautics Systems sales2,969 2,515 
Defense Systems
Cost-type360 30 %423 35 %
Fixed-price853 70 %784 65 %
Intersegment sales199 169 
Defense Systems sales1,412 1,376 
Mission Systems
Cost-type1,067 45 %961 41 %
Fixed-price1,315 55 %1,365 59 %
Intersegment sales277 237 
Mission Systems sales2,659 2,563 
Space Systems
Cost-type2,457 68 %2,446 74 %
Fixed-price1,171 32 %872 26 %
Intersegment sales27 32 
Space Systems sales3,655 3,350 
Total
Cost-type5,197 51 %5,061 54 %
Fixed-price4,936 49 %4,240 46 %
Total Sales$10,133 $9,301 
(1)Percentages calculated based on external customer sales.
Sales by Geographic RegionThree Months Ended March 31
20242023
$ in millions$
%(2)
$
%(2)
Aeronautics Systems    
United States$2,529 87 %$2,119 87 %
Asia/Pacific149 5 %147 6 %
Europe225 8 %174 7 %
All other(1)
7 — %10 — %
Intersegment sales59 65 
Aeronautics Systems sales2,969 2,515 
Defense Systems
United States951 78 %819 67 %
Asia/Pacific71 6 %117 10 %
Europe154 13 %128 11 %
All other(1)
37 3 %143 12 %
Intersegment sales199 169 
Defense Systems sales1,412 1,376 
Mission Systems
United States1,928 81 %1,950 83 %
Asia/Pacific126 5 %92 4 %
Europe255 11 %200 9 %
All other(1)
73 3 %84 4 %
Intersegment sales277 237 
Mission Systems sales2,659 2,563 
Space Systems
United States3,563 98 %3,247 98 %
Asia/Pacific13 1 %20 1 %
Europe42 1 %45 1 %
All other(1)
10 — %6 — %
Intersegment sales27 32 
Space Systems sales3,655 3,350 
Total
United States8,971 88 %8,135 87 %
Asia/Pacific359 4 %376 4 %
Europe676 7 %547 6 %
All other(1)
127 1 %243 3 %
Total Sales$10,133 $9,301 
(1)All other is principally comprised of the Middle East.
(2)Percentages calculated based on external customer sales.